The Bank of England raised the rate to 2.25%
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Following the results of the September meeting, the Bank of England decided to raise the base interest rate, as expected, by 50 bp. — up to 2.25% from 1.75% per annum, should from a post on the regulator’s website.
It is specified that the Bank of England raises the rate for the seventh time in a row. All nine members of the Monetary Policy Committee voted in favor of raising the rate, and in favor of raising the rate by 0.5 percentage points. five people voted, for 0.75 p.p. – three and one – for 0.25 p.p.
The meeting was originally supposed to take place on September 9, but it was postponed on the death of Queen Elizabeth II. The next rate meeting will take place on November 3rd.
The last time the regulator raised the key rate at a meeting in early August by 0.5 percentage points – from 1.25 to 1.75%. The Bank of England began to consistently raise the rate in December 2021, then it increased it from 0.1 to 0.25%. In February 2022, the rate increased to 0.5%, in March to 0.75%, in May to 1%, and in June to 1.25%.
According to the latest data from the UK Office for National Statistics, in August, inflation in the country slowed to 9.9% after a record 10.1% in July. Earlier, Bloomberg reported that the Bank of England expects inflation to accelerate above 13% by the end of the year.
The day before, September 21, the US Federal Reserve for the third time in a row raised rate by 0.75 p.p. – up to 3-3.25%. Most committee members believe that by the end of the year it will reach 4.25-4.5%.
Earlier, on September 8, the European Central Bank accepted the decision to raise the key rate immediately by 0.75 p.p. to 1.25%, which will soon return inflation to the medium-term target of 2%. According to the results of August, consumer inflation in the eurozone countries became a record for the entire existence of the single European currency since January 1, 1999, follows from the data of Eurostat published on August 31. It reached 9.1% year on year.
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